Grain Markets and Other Stuff

Joe's Premium Subscription: www.standardgrain.com

Grain Markets and Other Stuff Links-

Apple Podcasts
Spotify
TikTok
YouTube

Futures and options trading involves risk of loss and is not suitable for everyone.

Corn Futures Correct Lower 📉
CME Group corn futures saw a correction lower after reaching $5.04 last week, trading below $4.90 overnight. The strong rally may have made a correction overdue. Forecasts of rainfall in Argentina's corn country and discussions of increased US corn acreage have added selling pressure ahead of USDA's Ag Outlook Forum data later this week. 🌽🌧️

Brazil Soybean Harvest Progressing 🌱
Brazil's soybean harvest continues to mirror last year's pace, with 37.6% of the crop harvested compared to 38% last year. Conab forecasts Brazil's crop at 166 MMT, while the USDA estimates 169 MMT. Dry conditions are expected in some regions over the next two weeks, though rainfall in Argentina may ease row crop weakness. 🇧🇷🌾

Funds Increase Net-Long Position 💼
CFTC data shows "The Funds" increased their net-long position in corn and wheat markets last week. Large money managers bought 33k corn contracts, bringing the net long to 360k contracts—the second largest since April 2022. Wheat contracts also saw increased buying, while soybean contracts experienced net selling. 💰📊

US Corn Export Sales Decline 🌍
US corn export sales dropped last week to 1.5mmt (67mil bushels), down 12% from the previous week. However, sales remain strong, with Mexico being the largest buyer. Soybean sales also saw a decline, while wheat sales remained robust, rising 31% from the prior 4-week average. 🚜🌽

Stock Market Tumbles 📉
The stock market fell sharply on Friday, with the Dow Jones and S&P 500 down by 1.7%, and the Nasdaq declining by 2.2%. The losses came amid concerns of slowing economic growth, persistent inflation, and geopolitical tensions. Disappointing economic data and consumer inflation expectations fueled the declines. 📊💥

Cattle on Feed Report Neutral to Slightly Bullish 🐄
The February 1st Cattle on Feed report showed 11.7 million head on feed, a slight decrease from pre-report estimates and 1% lower than last year. January placements were lower than expected, which may be viewed as slightly bullish by the market. The report suggests tighter cattle numbers for the coming months. 🐄📉